BlackRock, Inc. (BLK) | Investment Case

1. Company Snapshot

1.a. Company Description

BlackRock, Inc.is a publicly owned investment manager.The firm primarily provides its services to institutional, intermediary, and individual investors including corporate, public, union, and industry pension plans, insurance companies, third-party mutual funds, endowments, public institutions, governments, foundations, charities, sovereign wealth funds, corporations, official institutions, and banks.

It also provides global risk management and advisory services.The firm manages separate client-focused equity, fixed income, and balanced portfolios.It also launches and manages open-end and closed-end mutual funds, offshore funds, unit trusts, and alternative investment vehicles including structured funds.

The firm launches equity, fixed income, balanced, and real estate mutual funds.It also launches equity, fixed income, balanced, currency, commodity, and multi-asset exchange traded funds.The firm also launches and manages hedge funds.

It invests in the public equity, fixed income, real estate, currency, commodity, and alternative markets across the globe.The firm primarily invests in growth and value stocks of small-cap, mid-cap, SMID-cap, large-cap, and multi-cap companies.It also invests in dividend-paying equity securities.

The firm invests in investment grade municipal securities, government securities including securities issued or guaranteed by a government or a government agency or instrumentality, corporate bonds, and asset-backed and mortgage-backed securities.It employs fundamental and quantitative analysis with a focus on bottom-up and top-down approach to make its investments.The firm employs liquidity, asset allocation, balanced, real estate, and alternative strategies to make its investments.

In real estate sector, it seeks to invest in Poland and Germany.The firm benchmarks the performance of its portfolios against various S&P, Russell, Barclays, MSCI, Citigroup, and Merrill Lynch indices.BlackRock, Inc.

was founded in 1988 and is based in New York City with additional offices in Boston, Massachusetts; London, United Kingdom; Gurgaon, India; Hong Kong; Greenwich, Connecticut; Princeton, New Jersey; Edinburgh, United Kingdom; Sydney, Australia; Taipei, Taiwan; Singapore; Sao Paulo, Brazil; Philadelphia, Pennsylvania; Washington, District of Columbia; Toronto, Canada; Wilmington, Delaware; and San Francisco, California.

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1.b. Last Insights on BLK

BlackRock's recent performance was driven by strong Q2 2025 earnings, with revenue growing 13% year-over-year to $5.42 billion, beating the consensus estimate. The company's record AUM balance of $12.52T, fueled by equity, fixed income inflows, and surging digital asset growth, contributed to its momentum. Strategic acquisitions of HPS Investment Partners and ElmTree Funds expanded BlackRock's private credit and real estate offerings, diversifying revenue streams and boosting long-term margins.

1.c. Company Highlights

Last Price	1075.58
Change Percentage	-0.40%
Open	1080.82
Previous Close	1079.87
Market Cap ( Millions)	166667
Volume	539058
Year High	1219.94
Year Low	773.74
M A 50	1105.01
M A 200	1036.46

FCF Yield	2.36%
Dividend Yield	1.93%
ROE	12.18%
Debt / Equity	4.10%
Net Debt / EBIDTA	-84.66%
Price To Book	3.0
Price Earnings Ratio	27.33
Price To FCF	42.38
Price To sales	7.28
EV / EBITDA	17.47

2. BlackRock's Q3 2025 Earnings: Strong Growth and Diversification

BlackRock's third-quarter 2025 earnings reflect strong financial performance, with $6.5 billion in revenue, a 25% year-over-year increase, driven by acquisitions and organic base fee growth. The company's as-adjusted operating margin was 44.6%. Earnings per share (EPS) came in at $11.55, a 1% increase year-over-year, beating analyst estimates of $11.3. The revenue growth and EPS beat demonstrate the company's ability to deliver strong financial performance.

Publication Date: Oct -16

                                    📋 Highlights
                                    Revenue & AUM Growth::
                                                Revenue hit $6.5B (+25% YoY), while AUM surged to a record $13.5T driven by acquisitions and organic growth.
Net Inflows & ETF Momentum::
                                                $205B net inflows led by iShares ETFs ($153B), with organic base fee growth at 10% (highest in 4+ years).
Capital Efficiency & Margin::
                                                As-adjusted operating margin of 44.6%, alongside $375M in share repurchases and a low-teens G&A expense growth outlook.
Private Credit & Digital Assets::
                                                HPS added $225M in base fees; digital assets AUM grew to $100B+ (from near-zero in 2023), with tokenization ambitions.
Retirement & Global Expansion::
                                                $660B in private markets AUM, $585B in target date funds, and Europe’s ETF inflows surpassing 2024’s $103B annual total.

                                

Drivers of Growth

The company's assets under management (AUM) reached a record $13.5 trillion, driven by net inflows of $205 billion in the quarter, led by iShares ETFs, which generated $153 billion of net inflows. The organic base fee growth was 8% over the last twelve months, the highest level in over four years. BlackRock's multiple sources of growth, including digital assets, bond ETFs, and active ETFs, differentiate it and make it optimistic for the future.

Business Diversification and Innovation

BlackRock has been focused on building capabilities, including ETFs, private markets, and cash management. Recent acquisitions, including HPS and Elmtree, have expanded BlackRock's capabilities. The company is exploring opportunities in digital assets, including tokenization, and aims to provide access to high-quality traditional investment products in digital wallets. The iShares franchise has surpassed $5 trillion in assets, with record net inflows of $153 billion in the third quarter.

Valuation and Outlook

With a Price-to-Book Ratio (P/B) of 3.79 and a Price-to-Sales Ratio (P/S) of 8.14, the market is pricing in a certain level of growth and profitability. Analysts estimate next year's revenue growth at 18.1%. Given BlackRock's diversified franchises, strong financial performance, and innovative approach, it is well-positioned to deliver long-term value for shareholders.

Segment Performance

HPS added $225 million in base fees and $270 million in performance fees in the quarter. The performance fees have some seasonality to them, and BlackRock expects slightly lower performance fees from HPS in the fourth quarter. The company's private credit markets are focused on delivering private credit to insurance portfolios and retail alternatives.

3. NewsRoom

AI Growth Will Keep Magnificent 7 The Place To Be In 2026, BlackRock Says

Dec -04

Source: feeds.benzinga.com

Dow Jones Today: Major Stock Indexes Little Changed; Weekly Jobless Claims Unexpectedly Fall; Inflation Data on Tap Tomorrow

Dec -04

Source: investopedia.com

BlackRock's CEO Sees 'Huge Winners and Huge Failures' Coming in AI

Dec -04

Source: investopedia.com

Market Today: Deal Talks, Retail Wins, AI Chips, and Crypto Volatility

Dec -02

Source: gurufocus.com

BlackRock: Back In The Buy Column Now (Rating Upgrade)

Dec -02

Source: seekingalpha.com

BlackRock turns bearish on long-term Treasuries as AI funding wave looms

Dec -02

Source: reuters.com

Market Today: Crypto Rout, Omnicom Cuts, Nvidia--Synopsys Deal

Dec -01

Source: gurufocus.com

3 BlackRock ETFs to Buy Before 2026 (Over 16% Yield!)

Dec -01

Source: 247wallst.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.50%)

6. Segments

Asset Management Business

Expected Growth: 12.5%

BlackRock's asset management business is expected to grow driven by increasing adoption of ETFs, expanding presence in non-US markets and leveraging technology to enhance investment capabilities.

7. Detailed Products

Index Funds

A type of investment vehicle that tracks a particular market index, such as the S&P 500, to provide broad diversification and low fees.

Active Equity Funds

Actively managed funds that aim to beat the market by selecting stocks that are undervalued or have strong growth potential.

Fixed Income Funds

Investment vehicles that generate income through bonds, loans, and other debt securities.

Multi-Asset Funds

Funds that combine different asset classes, such as stocks, bonds, and commodities, to provide a diversified portfolio.

Exchange-Traded Funds (ETFs)

Traded on an exchange like stocks, ETFs track a particular index, sector, or commodity, offering flexibility and diversification.

Alternative Investments

Investments that don't fit into traditional asset classes, such as private equity, real estate, and hedge funds.

iShares ETFs

A range of ETFs that track various market indexes, sectors, and commodities, offering diversification and flexibility.

Aladdin Platform

A comprehensive investment and risk management platform for institutional investors and wealth managers.

8. BlackRock, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

BlackRock's investment products and services are highly diversified, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

BlackRock's customers, including institutional investors and individual investors, have some bargaining power due to the availability of alternative investment options.

Bargaining Power Of Suppliers

BlackRock's suppliers, including technology providers and service providers, have limited bargaining power due to the company's large scale and diversified operations.

Threat Of New Entrants

The asset management industry has high barriers to entry, including regulatory hurdles and the need for significant capital investment, making it difficult for new entrants to emerge.

Intensity Of Rivalry

The asset management industry is highly competitive, with many established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	16.75%
Debt Cost	3.95%
Equity Weight	83.25%
Equity Cost	10.85%
WACC	9.70%
Leverage	20.12%

11. Quality Control: BlackRock, Inc. passed 6 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

BNY Mellon

A-Score: 6.7/10

Value: 3.9

Growth: 6.6

Quality: 6.8

Yield: 5.0

Momentum: 8.5

Volatility: 9.7

1-Year Total Return ->

Ameriprise Financial

A-Score: 5.9/10

Value: 5.1

Growth: 7.8

Quality: 7.8

Yield: 2.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

BlackRock

A-Score: 5.8/10

Value: 2.2

Growth: 5.3

Quality: 7.5

Yield: 4.0

Momentum: 7.0

Volatility: 9.0

1-Year Total Return ->

Blackstone

A-Score: 5.2/10

Value: 0.3

Growth: 4.1

Quality: 7.5

Yield: 7.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

Ares Management

A-Score: 4.9/10

Value: 2.4

Growth: 5.7

Quality: 4.9

Yield: 6.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

KKR

A-Score: 3.9/10

Value: 1.7

Growth: 6.6

Quality: 3.8

Yield: 2.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

16.77%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.70%

BlackRock, Inc. - US09247X1019

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on BLK

1.c. Company Highlights

Expensive

Better Quality

Medium Volatility

Earnings Beats

Revenues Beats

Less Volatile

Average Quality

Stable Momentum

2. BlackRock's Q3 2025 Earnings: Strong Growth and Diversification

Drivers of Growth

Business Diversification and Innovation

Valuation and Outlook

Segment Performance

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.50%)

6. Segments

Asset Management Business

Expected Growth: 12.5%

7. Detailed Products

Index Funds

Active Equity Funds

Fixed Income Funds

Multi-Asset Funds

Exchange-Traded Funds (ETFs)

Alternative Investments

iShares ETFs

Aladdin Platform

8. BlackRock, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: BlackRock, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1075.58$

Current Price

1075.58$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA